What was the foreign exchange loss incurred on transaction

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Reference no: EM131506436

Siam Cement. Siam Cement, the Bangkok-based cement manufacturer, suffered enormous losses with the coming of the As-an crisis in 1997. the company had been pursuing a very aggressive growth strategy in the mid-1990s, taking on massive quantities of foreign-currency-denominated debt (primarily U.S. dollars). When the Thai baht (B) was devalued from its pegged rate of B25.1/S in July 1997, Siam's interest payments alone were over $900 million on its outstanding dollar debt (with an average interest rate of 8.02% on its U.S. dollar debt at that time). Assuming Siam Cement took out $45 million in debt in June 1997 at 8.02% interest, and had to repay it in one year when the spot exchange rate had stabilized at B42.1/$, what was the foreign exchange loss incurred on the transaction?

the amount of the foreign exchange loss incurred on the transaction is B (Round to the nearest whole number.)

Reference no: EM131506436

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